Additional $1M Institutional Investment in EVCIAnnounced --Two More Funds Join Series B...

Business Editors/Educational Writers

YONKERS, N.Y.--(BUSINESS WIRE)--Oct. 3, 2000

Educational Video Conferencing, Inc., (Nasdaq: EVCI; PCX: EVI; BSE: EVI) today announced that it has issued an additional $1 million of Series B convertible preferred stock to Merced Partners Limited Partnership

and Lakeshore International, Ltd. as part of a joint private investment in EVCI. The net proceeds of this transaction will be used for general corporate purposes, including the deployment of EVCI's proprietary enhanced communication system with consistent 30 frames per second (broadcast TV quality) transmission and receipt. The additional financing adds to EVCI's already improved balance sheet as it moves toward its revised goal of profitability in 2001.

The Series B preferred stock will initially be convertible into EVCI common stock at a price of $13.50 per common share. This $1 million private placement is in addition to the recently announced sales of Series B preferred for $12 million on the same terms. Three-year warrants to purchase 722,223 shares of EVCI's common stock at an initial exercise price of $20.25 per share have also been issued to the holders of Series B preferred stock.

About Educational Video Conferencing, Inc.

EVCI is deploying its proprietary broadband network design which, using Internet Protocol infrastructure technology, permits EVCI to provide two-way multi-point, multi-media voice, video and data transmissions over a high speed broadband. Users of EVCI's broadband network can deliver educational content at near 30 frames per second (broadcast quality) through DSL, ATM, T-1 lines, cable modems or satellite.

EVCI's services turn distance learning into enhanced distributed learning with a real-time, interactive exchange that re-creates the live classroom experience on a computer or large screen. The instructor can see and hear the students live, just as the students see, hear and talk with other students at multiple locations. As a content provider, EVCI can presently offer more than 250 degree programs, including over 2,500 courses.

EVCI corporate clients include Merrill Lynch, Citibank, N.A., Lockheed Martin Corp., Bell Atlantic, AIG and Travelers, among other Fortune 100 companies. EVCI also has contracts with the New York City Board of Education and the National Football League Players Association, among others. Educational institutions that provide content include St. John's University, Adelphi University, Clemson University, Manhattan College, The College of Insurance, Computer Generated Solutions, Inc., Mercy College, Concordia College, Golden Gate University, Kaplan Educational Centers, TRA (Telecommunications Research Associates) and Touro College/Touro University International (including Touro Law School).

EVCI has developed co-marketing relationships with organizations that have a strong interest in increasing usage of their services by being able to offer EVCI's education and training content and delivery technologies and services. EVCI's co-marketing multi-year agreements with Bell Atlantic and @Home Network give it marketing access to a large number of major corporations and to more than 75 million U.S. households. EVCI's multi-year co-marketing agreement with We Media, Inc. gives it marketing access to 54 million Americans with disabilities, their families and friends. Other co-marketing agreements include those with edcor, Computer Generated Solutions and Corporate Scenes, Inc.

The forward-looking statement in this news release about EVCI's goal of profitability in 2001 is subject to certain assumptions, risks and uncertainties. These include: EVCI's network design may not be successfully deployed and requisite agreements with potential users may not be reached; technical problems may delay such deployment; competitors may develop superior technology; the implementation of co-marketing agreements may be delayed or unsuccessful; substantial additional capital may be required by EVCI and EVCI may not be able to sell any additional Series B Preferred Stock or other securities; and the other specific risk factors described in EVCI's filings with the SEC, including its Form S-3 registration statement effective June 2, 2000 (file No. 333-34190). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated by the forward-looking statement. EVCI undertakes no obligation to update the information in this press release.